Should Americans be concerned about the economic effects of outsourcing? Not particularly. Most of the numbers thrown around are vague, overhyped estimates. What hard data exist suggest that gross job losses due to offshore outsourcing have been minimal when compared to the size of the entire U.S. economy.

Similarly, current predictions are not as ominous as they first sound once the numbers are unpacked. Most jobs will remain unaffected altogether: close to 90 percent of jobs in the United States require geographic proximity.

As for the jobs that can be sent offshore, even if the most dire-sounding forecasts come true, the impact on the economy will be negligible. The Forrester prediction of 3.3 million lost jobs, for example, is spread across 15 years. That would mean 220,000 jobs displaced per year by offshore outsourcing -- a number that sounds impressive until one considers that total employment in the United States is roughly 130 million, and that about 22 million new jobs are expected to be added between now and 2010. Annually, outsourcing would affect less than .2 percent of employed Americans.

There is no denying that the number of manufacturing jobs has fallen dramatically in recent years, but this has very little do with outsourcing and almost everything to do with technological innovation.

According to the Bureau of Labor Statistics "Occupation Outlook Handbook," the number of IT-related jobs is expected to grow 43 percent by 2010. The case of IBM reinforces this lesson: although critics highlight the offshore outsourcing of 3,000 IT jobs, they fail to mention the company's plans to add 4,500 positions to its U.S. payroll. Large software companies such as Microsoft and Oracle have simultaneously increased outsourcing and domestic payrolls.

If offshore outsourcing is not the cause of sluggish job growth, what is? A study by the Federal Reserve Bank of New York suggests that the economy is undergoing a structural transformation: jobs are disappearing from old sectors (such as manufacturing) and being created in new ones (such as mortgage brokering). In all such transformations, the creation of new jobs lags behind the destruction of old ones.

During the 1990s, the passage of NAFTA and the Uruguay Round of trade talks were supposed to create a "giant sucking sound" as jobs left the United States. Contrary to such fears, tens of millions of new jobs were created. Once the economy improves, the political hysteria over outsourcing will also disappear.

Should Americans be concerned about the economic effects of outsourcing? Not particularly. Most of the numbers thrown around are vague, overhyped estimates. What hard data exist suggest that gross job losses due to offshore outsourcing have been minimal when compared to the size of the entire U.S. economy.

Similarly, current predictions are not as ominous as they first sound once the numbers are unpacked. Most jobs will remain unaffected altogether: close to 90 percent of jobs in the United States require geographic proximity.

As for the jobs that can be sent offshore, even if the most dire-sounding forecasts come true, the impact on the economy will be negligible. The Forrester prediction of 3.3 million lost jobs, for example, is spread across 15 years. That would mean 220,000 jobs displaced per year by offshore outsourcing -- a number that sounds impressive until one considers that total employment in the United States is roughly 130 million, and that about 22 million new jobs are expected to be added between now and 2010. Annually, outsourcing would affect less than .2 percent of employed Americans.

There is no denying that the number of manufacturing jobs has fallen dramatically in recent years, but this has very little do with outsourcing and almost everything to do with technological innovation.

According to the Bureau of Labor Statistics "Occupation Outlook Handbook," the number of IT-related jobs is expected to grow 43 percent by 2010. The case of IBM reinforces this lesson: although critics highlight the offshore outsourcing of 3,000 IT jobs, they fail to mention the company's plans to add 4,500 positions to its U.S. payroll. Large software companies such as Microsoft and Oracle have simultaneously increased outsourcing and domestic payrolls.

If offshore outsourcing is not the cause of sluggish job growth, what is? A study by the Federal Reserve Bank of New York suggests that the economy is undergoing a structural transformation: jobs are disappearing from old sectors (such as manufacturing) and being created in new ones (such as mortgage brokering). In all such transformations, the creation of new jobs lags behind the destruction of old ones.

During the 1990s, the passage of NAFTA and the Uruguay Round of trade talks were supposed to create a "giant sucking sound" as jobs left the United States. Contrary to such fears, tens of millions of new jobs were created. Once the economy improves, the political hysteria over outsourcing will also disappear.

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MAYBE ON YOUR PLANET YOUR JOB IS SECURE, BUT ON MINE THE ECONOMY SUCKS. THE ROADS ARE FULL OF POTHOLES, PEOPLE ARE WORKING WITHOUT CONTRACTS (AND LIKING IT), AND THE CHINESE ARE TELLING US TO GO FXXX OURSELVES (ALONG WITH THE GERMANS, ITALIANS, AND THE FRENCH)

1ST,, SCREW NATO

2ND A CURSE ON ANY COMPANY, OR CEO WHO FEELS CHINA/PAKISTAN/SOUTH AMERICA CAN DELIVER THE GOODS AT THE EXPENSE OF US EMPLOYMENT AND STILL SLEEP AT NIGHT.

MAYBE ON YOUR PLANET YOUR JOB IS SECURE, BUT ON MINE THE ECONOMY SUCKS. THE ROADS ARE FULL OF POTHOLES, PEOPLE ARE WORKING WITHOUT CONTRACTS (AND LIKING IT), AND THE CHINESE ARE TELLING US TO GO FXXX OURSELVES (ALONG WITH THE GERMANS, ITALIANS, AND THE FRENCH)

1ST,, SCREW NATO

2ND A CURSE ON ANY COMPANY, OR CEO WHO FEELS CHINA/PAKISTAN/SOUTH AMERICA CAN DELIVER THE GOODS AT THE EXPENSE OF US EMPLOYMENT AND STILL SLEEP AT NIGHT.

MAYBE ON YOUR PLANET YOUR JOB IS SECURE, BUT ON MINE THE ECONOMY SUCKS. THE ROADS ARE FULL OF POTHOLES, PEOPLE ARE WORKING WITHOUT CONTRACTS (AND LIKING IT), AND THE CHINESE ARE TELLING US TO GO FXXX OURSELVES (ALONG WITH THE GERMANS, ITALIANS, AND THE FRENCH)

1ST,, SCREW NATO

2ND A CURSE ON ANY COMPANY, OR CEO WHO FEELS CHINA/PAKISTAN/SOUTH AMERICA CAN DELIVER THE GOODS AT THE EXPENSE OF US EMPLOYMENT AND STILL SLEEP AT NIGHT.

Click to expand...

Since when should you be guaranteed to keep your frigg'n job? I own a business. If things go bust tomorrow, who do I turn to? If you want security, go join the military. They will give you a four year hitch and guarantee you a check every month!

1.move to a national retail sales tax-getting rid of the corporate taxes,income taxes,social security taxes and all other federal taxes and instituting a national sales tax could reduce the prices of exported goods by 22-25%. since exports are not taxed and the corporate taxes that are now fixed into the prices of goods will be removed it will enable us to compete in the global market place.the national sales tax is estimated right now at 23% but could be lowered over time by reducing government spending and the increased revenue through growth in the economy.

2.have people provide their own health insurance

3.have people provide for their own retirement

4.relax government regulations

5.end affirmative action

6.get rid of the minimum wage

7.find new markets for american goods

8.increase the education level of americans and increase the number of new scientists and engineers.

1.move to a national retail sales tax-getting rid of the corporate taxes,income taxes,social security taxes and all other federal taxes and instituting a national sales tax could reduce the prices of exported goods by 22-25%. since exports are not taxed and the corporate taxes that are now fixed into the prices of goods will be removed it will enable us to compete in the global market place.the national sales tax is estimated right now at 23% but could be lowered over time by reducing government spending and the increased revenue through growth in the economy.

2.have people provide their own health insurance

3.have people provide for their own retirement

4.relax government regulations

5.end affirmative action

6.get rid of the minimum wage

7.find new markets for american goods

8.increase the education level of americans and increase the number of new scientists and engineers.

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